Will Bankruptcy Help Delay Sale of a House Foreclosure?

Sat, 06 Feb 2021 02:47:45 -0800

Chapter 7 bankruptcy is essentially a method for debtors to eliminate their debts through a procedure which will give them a summary discharge. Foreclosures are a method in which homeowners stop paying their mortgages after a certain period. Often there are multiple transactions between foreclosures and bankruptcy. Chapter 7 bankruptcy does not, at all, stop a foreclosure from occurring on your house.

First, it is necessary to analyze whether or not your home loan has fallen behind. It is very common for many homeowners to fall behind on their mortgage payments when they first purchased their home. The problem comes into place when this happens on a regular basis. When a home is fallen behind on its mortgage payments, it becomes difficult for the lender to sell the property. The lender must then attempt to foreclose on the home even if the current owner has already fallen behind on their mortgage payments.

A means test is used to determine if a debtor is able to pay their monthly income and their expenses. If a debtor has a monthly income which is significantly lower than their expenses, it is more likely that the debtor will be unable to continue making their mortgage payments. As long as the monthly income meets the required monthly expense of expenses and there is some equity left it is unlikely that a chapter 7 bankruptcy will be granted. However, the debtor may still qualify for a chapter 7 bankruptcy if their monthly income and expenses do meet the required criteria.

When a debtor files for chapter 7 bankruptcy their home is usually protected. However, the lender can file a motion to have the house sold at auction if there is no qualifying inspection. This is called an involuntary foreclosure process. This process occurs only after the lender has taken legal action to start the foreclosure process. Once the house has been lost, the lender is entitled to sell it through public auction. A trustee will oversee the...Read More

Filing For Chapter 7 For Free?

Tue, 11 Sep 2018 23:17:30 -0700

Can you file Chapter 7 Bankruptcy Yourself?

You are afraid to answer the phone. The creditors are hounding you night and day calling you at work and your relatives. The bank is threatening to foreclose on your house. You cannot sleep. You do not even have the money to hire a lawyer to file for bankruptcy. Can you do it yourself?

The answer is sort of. There are some fees involved that you cannot avoid but they are relatively minor in the grand scheme of things. The biggest cost is your time and effort. Hopefully you have the time. Events will still proceed while you are attempting to file Chapter 7 and you may be too late to stop them.

The Means Test

Simply put, do you even qualify for a Chapter 7 bankruptcy filing? In the state of California, the official government means test is located here. These are all the official rules that you must follow. If you do not qualify, then it does not matter. You need a different solution. If you do qualify, we can go on to the next step. This is free.

Get Your 3 Credit Reports (Almost Free!)

Ok, it is very important for you to get all 3 of your credit reports. Because if you do not include all your debts in the filing any unreported debt will not be cleared. It will be there to keep haunting you. This is not the time to get sloppy. This may cost you money, you may be able to get 2 reports free, but getting all 3 might cost you $59-$129.

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